15 September 2026 · What Changed
What Changed in UAE Tax Penalties for 2026
Two changes landed together. Cabinet Decision No. 129 of 2025 re-prices administrative tax penalties from 14 April 2026, cutting several fixed amounts, such as the Arabic-records failure dropping from AED 20,000 to AED 5,000. Separately, Federal Decree-Law No. 17 of 2025 rewrote the Tax Procedures Law from 1 January 2026, extending the audit window to 15 years for evasion and non-registration and opening a window to reclaim expired credits. Lower cost for ordinary slip-ups, higher stakes for serious cases, is the honest summary.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Re-priced, mostly down
Proportionality is the theme.
- Cabinet Decision 129 of 2025 sets the schedule.
- Effective 14 April 2026.
- Several fixed penalties fall.
- Arabic-records failure AED 20,000 to AED 5,000.
A longer reach
The other half of the package.
- FDL 17 of 2025 from 1 January 2026.
- 15-year audit window for evasion and non-registration.
- 5-year refund limit retained.
- Credit-reclaim window to ~31 December 2026.
Read both halves
Do not relax on the cuts alone.
- Ordinary slip-ups cost less.
- Serious cases carry more risk.
- Obligations themselves are unchanged.
- Timing decides which schedule applies.
Related guides
Frequently Asked Questions
For understanding the reset.
What is the main penalty change for 2026?
Cabinet Decision No. 129 of 2025 re-prices administrative tax penalties from 14 April 2026, reducing several fixed amounts. The most cited example is the Arabic-records failure falling from AED 20,000 to AED 5,000.
When does the new penalty schedule apply?
From 14 April 2026. Penalties raised before that date can still carry the old figures, so the effective date matters when assessing a specific case.
What else changed alongside the penalties?
Federal Decree-Law No. 17 of 2025 rewrote the Tax Procedures Law from 1 January 2026, extending the audit window to 15 years for evasion and non-registration and opening a window to reclaim expired credits.
Did VAT or corporate-tax rates change?
No. This is a change to penalties and procedures, not to the 5% VAT rate or the 9% corporate-tax rate. The substantive taxes are unchanged.
Is this an amnesty?
No. It re-prices penalties and does not waive obligations. A cheaper penalty is still a penalty, and the underlying breach still needs fixing.
Can Exiloz explain the impact on us?
Yes. We map both changes to your situation, whether a lower penalty helps you and what the longer audit window means for your records.
See what changed for you
Exiloz maps the 2026 penalty and procedure changes to your business.